Up-Front Payment and Advanced Fee Fraud

Business Loans Scotland is aware of an Advanced Fee Fraud using our name or initials “BLS”. This Fraud induces individuals into believing they are applying for a fast loan but before an individual receives the loan they are told they must pay an upfront fee. Once the fee is paid, the victim does not hear from the company again and the loan is never received.Business Loans Scotland does not ask a Borrower for any fees up-front and any promise of this type of loan requiring an up-front fee is a CON.If a fraud has been committed, please report it immediately to the Police.

FAQ's

Frequently asked questions about Business Loans Scotland, the application process and Business Advisers.

Business Loans Scotland is a consortium of Scotland’s 32 local authorities, incorporated as a company limited by guarantee in March 2015 to provide loan finance up to £100,000 to new and growing, small and medium-sized businesses (SMEs) across Scotland.

A Business Loans Scotland Loan is a loan to help you start or grow your business. The loan is given for business purposes and can be used for capital expenditure or working capital. Your loan application will be considered according to the needs of your business and will be determined locally by officers representing your local authority.

No. A grant is a non-repayable fund provided by an individual or an organisation for a particular purpose. Grants are often awarded to non-profit entities, as well as businesses or individuals. The process for applying for a grant for a specific business will almost always include some level of compliance and reporting, which will then be assessed for eligibility by the grant maker. You can apply for a grant from the government, the European Union, local councils and charities. Generally you will not need to pay a grant back, but there is a lot of competition and they are almost always awarded for a specific purpose or project. The difference between a grant and a Business Loans Scotland Loan is a Business Loans Scotland Loan must be repaid.

The team at Business Loans Scotland will work together with your local authority to make the decision on your loan based on the proposal supported by the information provided including your business plan.

The current interest rate is set at a fixed rate of 6% for the term of the loan. It should be noted however, that should the applicant business be a start up with low collateralisation the rate may be higher.

A Business Adviser is an individual with business experience who will provide support and guidance to help make your business a success. Your local authority/business gateway office will assign an adviser to support you throughout the loan application process and after your loan has been approved.

Yes. If a business has problems with repaying the loan they can seek support from their business adviser that helped them apply for the loan. Business Loans Scotland is committed to support businesses through difficult times and will provide support and options to help businesses succeed.

When a loan recipient fails to make a payment, Business Loans Scotland via your adviser, will contact you to try and determine the reasons for the payment being missed. This is then followed up by an email and or letter stating that repayment has been missed and what needs to be done to remedy the situation. If a loan recipient is having difficulty in meeting their loan obligations they should inform Business Loans Scotland as soon as possible. We will then try and work with the loan recipient to come to a reasonable and fair outcome to ensure they continue to meet their loan obligations. If a loan recipient fails to respond to attempts to contact them with respect to their missed loan repayments, Business Loans Scotland may then look to recover the outstanding payments through various means including calling on any security held and/or taking appropriate legal action.

On average the time expected for a loan application to reach drawdown is around 13 weeks. Whilst this may seem a lengthy period of time this includes time to submit the application and all the supporting documentation. Some applications may be processed much quicker however some with complex proposals or security requirements may take longer.

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